Assessment: Audi s JIT Supply Chain Management Method

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[. . .] 103). Freight is forward from the production plants to their destinations and the management of people in the operations process and in the supply chain is made possible through the use of the JIT policy that gives Audi the freedom to operate in a controlled environment where there is minimal overhead.

Audi also considers its stakeholders’ input in how its operations should be run. It surveys consumers and employees, as the company itself reports, so that it can compile a decisive data basis for constructing a materiality matrix that will give the firm a better understanding of where it needs to focus its energies. Using opinion polls, online and in person interviews, and questionnaires, Audi is constantly obtaining information to add to its matrix: “The first of these surveys were carried out in 2012 – including a survey of customers in the Chinese, German and American markets. At the start of 2013, Audi analyzed how 1,500 employees at the Ingolstadt, Neckarsulm, Brussels and Gy?r locations rated the importance of sustainability topics at Audi and the company’s performance in tackling them” (Audi, 2017). In so doing, Audi accentuates its JIT supply chain management method with on-the-ground, real-world input from stakeholders that help it to more effectively manage the firm’s workers and operations.

Triple Bottom Line: The Importance of Sustainability--Conclusion

Sustainable operations management is critical to Audi’s success in quality management, as it allows the firm to focus on quality issues that matter to stakeholders—from ecologically-sound performance-enhanced parts that provide drivers with the driving experience they desire without harm to the environment, to production processes that effect as little of a footprint on the environment as possible (Gunasekaran & Irani, 2014). Economical, environmental and social issues all impact the bottom line, and as Audi (2017) itself has stated in its overview of the firm’s strategy and organization, the values of society in the 21st century are moving more and more towards ecological awareness and sustainable practices—and in order to provide a quality product to consumers, Audi has to embrace these values as well, both in its products and in its productions: “Sustainably produced Audi e-fuels, CO2-neutral production and a supply chain that meets environmental standards are further building blocks of Audi’s sustainability strategy.” With this awareness, Audi is set to give consumers of the 21st century exactly what they want: a premium product that is engineered and produced with the safety of environment in mind.

Going forward, it is recommended that Audi continue to implement JIT supply chain management not just in Germany but at its new plant in Mexico as well. JIT can be integrated with quality management in this way, which allows waste to be eliminated, time and space to be conserved, and sustainable practices to be implemented that consumers of the environmentally-aware generation can appreciate.

References

Audi. (2017). Strategy and organization. Retrieved from

https://www.audi.com/corporate/en/sustainability/audi-and-co/strategy-and-organisation.html

Bowen, R. (2013). Theories in total quality management. Retrieved from

http://www.brighthubpm.com/methods-strategies/72443-theories-in-total-quality-management-tqm/

Diaz, L. M. (2006). Evaluation of cooperative planning in supply chains. NY: Springer.

Gunasekaran, A., & Irani, Z. (2014). Sustainable Operations Management: design,

modelling and analysis. Journal of the Operational Research Society, 65(6), 801-805.

ISO. (2015). Quality management principles. Retrieved from

https://www.iso.org/files/live/sites/isoorg/files/archive/pdf/en/pub100080.pdf

Ludwig, C. (2010). Audi: leading the pack for logistics again. Retrieved from

https://automotivelogistics.media/intelligence/audi-leading-the-pack-for-logistics-again

Precision. (2017). Industry insight: Audi AG—how is the automotive giant tackling

future supply chain challenges? Retrieved from https://www.precisionsoftware.com/2017/07/industry-insight-audi-ag-automotive-giant-tackling-future-supply-chain-challenges

Press Release. (2017). Audi sets new sales record: 1.871 million deliveries in 2016.

Retrieved from https://www.audiusa.com/newsroom/news/press-releases/2017/01/audi-sets-new-sales-record-1-871-million-deliveries-in-2016 [END OF PREVIEW]

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Audi s JIT Supply Chain Management Method.  (2017, December 14).  Retrieved July 22, 2019, from https://www.essaytown.com/subjects/paper/audi-s-jit-supply-chain-management/4971131

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"Audi s JIT Supply Chain Management Method."  14 December 2017.  Web.  22 July 2019. <https://www.essaytown.com/subjects/paper/audi-s-jit-supply-chain-management/4971131>.

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"Audi s JIT Supply Chain Management Method."  Essaytown.com.  December 14, 2017.  Accessed July 22, 2019.
https://www.essaytown.com/subjects/paper/audi-s-jit-supply-chain-management/4971131.